New 40% Local Production Requirement Introduced for Tax Exemption on Vehicles for the Disabled

In the foreign exchange market, a 40% local contribution requirement has been introduced for the Special Consumption Tax (SCT) exemption applied to vehicles for individuals with disabilities. The Presidential decision on "Determining the Local Contribution Rate of Vehicles Covered by the Exception Stated in Subparagraph 2 of the First Paragraph of Article 7 of the Special Consumption Tax Law No. 4760" has been published in the official gazette. Accordingly, the local contribution rate for sales made to disabled citizens under the SCT exemption will be 40%. Additionally, the holding period for vehicles obtained under the exemption has been increased from 5 years to 10 years.